The eurozone economy is barely growing

According to the latest Eurostat data, the eurozone economy added only 0.1% in the second quarter of 2025 compared to the previous quarter, while in the first quarter growth was noticeably higher - 0.6%. The EU as a whole fared slightly better at 0.2 per cent versus 0.5 per cent at the start of the year. On an annualised basis, the pace remained moderate: +1.4% in the eurozone and +1.5% in the EU.

By contrast, the US economy accelerated after a weak start to the year, posting quarterly growth of 0.7% and annual growth of 2.0%. Within the EU, country dynamics varied widely, from impressive quarterly growth in Bulgaria (+0.7%) and Poland (+0.8%) to declines in Germany (-0.1%) and Italy (-0.1%). Ireland stood out with a sharp decline of 1% after record jumps in previous periods, while Spain posted a steady +0.7%.

Employment in the euro area and the EU grew by a modest 0.1% over the quarter. Annual growth was 0.7 per cent for both groups, the same as at the beginning of the year. At the same time, the dynamics were higher in some countries: in Poland, Lithuania and Cyprus, employment rates maintained strong growth, while in large economies - like Germany and Italy - the figures were almost stagnant.

This combination of weak GDP growth and near-zero employment growth may signal that the region's economy is idling. In the face of global competition, especially with the US, the eurozone risks being stuck in a sluggish recovery where the only driver may be external factors, from global trade to energy prices.